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The Government of the Republic of Serbia

In the service of citizens

Law on Implementation of the Constitutional Charter of the State Union of Serbia and Montenegro

17 February 2003

I GENERAL PROVISIONS

Article 1. The Constitutional Charter of Serbia and Montenegro (hereinafter referred to as: the Constitutional Charter) comes into force when adopted and proclaimed by the Federal Assembly, with the identical text previously adopted by the Assembly of the Republic of Montenegro and the National Assembly of the Republic of Serbia, unless decided otherwise with regard to the implementation of particular provision by this Law.

Article 2. Provisions of the Constitutional Charter relating to the rights and obligations of the institutions of state union of Serbia and Montenegro are implemented from the day of their constitution, creation i.e. election in accordance with the Constitutional Charter, unless decided otherwise by this Law.

Article 3. All institutions of the State Union of Serbia and Montenegro will be constituted, i.e. will be elected no later than 30 days from the day the Constitutional Charter comes into force. The day the Constitutional Charter comes into force the bodies/authorities and organizations of the Federal Republic of Yugoslavia: Federal Assembly, President of the Republic, Federal Government, Federal Court and the Federal Constitutional Court continue to perform their duties in accordance with the Constitutional Charter until the constitution, formation i.e. elections of institutions of the state union of Serbia and Montenegro unless determined otherwise by this Law. The Yugoslav Army performs its duties until its transformation into the Army of Serbia and Montenegro. The bodies and organizations of the FRY performing their duties according to Paragraph 2. of this Article, may only pass the decisions necessary for smooth/unhindered functioning of the State Union of Serbia and Montenegro, except in extraordinary cases/events or state of war. This bodies and organizations cannot take over additional obligations for the State Union of Serbia and Montenegro.

Article 4. The Charter on Human and Minority Rights and Civil Freedoms shall be passed no later than the date of the constitution of the Assembly of Serbia and Montenegro. Remark 1: The Charter on Human and Minority Rights and Civil Freedoms shall be passed concurrently with the Constitutional Charter. Remark 2: The Charter on Human and Minority Rights and Civil Freedoms shall be passed in the same mode/manner as the Constitutional Charter, until the constitution of the Assembly of Serbia and Montenegro and no later than at the first session of the Assembly of Serbia and Montenegro.

II INSTITUTIONS OF THE STATE UNION OF SERBIA AND MONTENEGRO

Article 5. The member states shall pass laws on deputies' election to the Assembly of Serbia and Montenegro, no later than 10 days from the day the Constitutional Charter was proclaimed. The President of the Federal Republic of Yugoslavia will, no later than 15 days from the day the Constitutional Charter has come into force and in accordance with the Constitutional Charter, call for first indirect elections for the Assembly of Serbia and Montenegro. Amendment to the Article 5: After the Paragraph 1., Paragraphs 2. and 3. are added: "During indirect elections of Deputies to the Assembly of Serbia and Montenegro, the mandates are determined in such manner that the number of deputies the parties had during the constitution of the Assembly of the member state shall be divided by the total number of deputies in the member state Assembly, then multiplied by the number of deputies a member state has in the Assembly of Serbia and Montenegro, after which the system of the biggest remainders shall be applied. In the event a party does not wish to enter the Assembly of Serbia and Montenegro, the calculation should be diminished with the number of deputies in the Assembly of the member state for the number of deputies such party has in that Assembly."

Article 6. The first session of the Assembly of Serbia and Montenegro shall be called by the President of the Council of Citizens of the Federal Assembly, the President of the Council of Republics of the Federal Assembly, the President of the National Assembly of the Republic of Serbia and the President of the Assembly of the Republic of Montenegro. The first Session of the Assembly of Serbia and Montenegro shall be chaired by the most senior deputy. The first Session of the Assembly of Serbia and Montenegro will be held no later than 5 days from the day of deputies' election. At the first session the temporary rules on operating procedure of the Assembly of Serbia and Montenegro shall be adopted, the President and the Vice-President of the Assembly of Serbia and Montenegro shall be elected, the Law on Election of the President of Serbia and Montenegro will be enacted, as well as the act of temporary financing of the institutions of the State Union of Serbia and Montenegro for the year 2003. Article 7. The mandate of the federal deputies in the Council of Citizens and the Council of Republics of the Federal Assembly shall cease with deputies' mandate verification to the Assembly of Serbia and Montenegro.

Article 8. The President of Serbia and Montenegro shall call for direct elections for deputies to the Assembly of Serbia and Montenegro in such manner that these elections can be held upon expiry of the two-year term from the day the first convention of the Assembly of Serbia and Montenegro was constituted.

Article 9. The President of Serbia and Montenegro is elected at the first session of the Assembly of Serbia and Montenegro. Article 10. The President of Serbia and Montenegro shall propose the composition/structure of the Council of Ministers no later than 5 days from the day of his election/appointment. The Assembly of Serbia and Montenegro shall, in no later than 25 days from the date of election of the President of Serbia and Montenegro, pass laws on organization, mode of work and supervisions of the institutions of the state union of Serbia and Montenegro. The Assembly of Serbia and Montenegro shall concurrently with enforcement of the Law on the Court of Serbia and Montenegro, appoint judges to this Court. Article 11. The Supreme Defence Council shall command the Army of Serbia and Montenegro and approve decisions based on provisions of the Constitutional Charter, from the moment of its coming into effect. Article 12. The Court of Serbia and Montenegro shall take over all unsolved/unfinished matters and documents from the former Federal Constitutional Court and former Federal Court for which it has jurisdiction in accordance with the Constitutional Charter. Unfinished matters of up to the present Federal Constitutional Court and the Federal Court which are not under jurisdiction of the Court of Serbia and Montenegro shall be transferred to the Constitutional Courts and Regular Courts of the member states, in accordance with the laws of the member states.

Article 13.

Proposal 1: The National Bank of Yugoslavia shall perform duties from its jurisdiction, established by the Law on the National Bank of Yugoslavia and other regulations, on the territory of Serbia until the enactment of the Law on the National Bank of Serbia. After the Article 13, the Article 13a is added: Federal Ministry for Foreign Economic Relations shall perform duties of Fiscal Agent in International Financial Organizations with the approval of relevant bodies of the member states, and afterwards the Ministry for International Economic Relations of Serbia and Montenegro until the final model of representing and financial operating of the member states in International Financial Organizations is defined. During the transitional term, specialized and organizational duties stated in the previous Paragraph shall, until the final model of representing and presenting in International Financial Organizations is defined, be performed by the Services that have performed these duties until the enactment of this Law. The Agent Payee Function shall, in the name of the member states, be performed by the relevant bodies of the member states, based on agreement of the member states.

Proposal 2: With the day of the Constitutional Charter coming into force, the National Bank of Yugoslavia shall become the National Bank of Serbia with competencies defined by the Law on the National Bank of Yugoslavia and other Laws that shall be applied on the territory of Serbia. The National Bank of Serbia shall, in the name of the member states, perform he duties of the Fiscal Agent with the International Monetary Fund and the Depository of all international financial institutions, until the final model is defined. When performing duties of the Fiscal Agent, the National Bank of Serbia shall consult the Central Bank of Montenegro. The Ministry for Foreign Economic Relations of the state union shall perform the duties of the Fiscal Agent in other international financial organizations until the final model is defined, at the same time consulting Ministries of Finance of the member states. During the transitional term, specialized and organizational duties stated in previous Paragraphs shall, until the final model of representing and presenting in International Financial Organizations is defined, be performed in the up-to-date manner. The National Bank of Serbia and the Central Bank of Montenegro shall, in the name of the member states, perform the function of the Agent Payee in accordance with concluded International Agreements.

Proposal 3: The National Bank of Yugoslavia shall continue its functions as an institution during the 90-day-term until the enactment of the Law on the National Bank of the state union of Serbia and Montenegro. Article 14. With the day of the enforcement of the Constitutional Charter and this Law, federal bodies and organizations and bodies and organizations of the FRY shall cease with their work. They shall become bodies and organizations of the member state of Serbia and continue to work in accordance with regulations they are constituted upon and by which their duties are determined, until harmonized by the member state of Serbia with its own legislature, that being:

Federal Customs Administration/Department
Federal Sanitary, Veterinary and Phytosanitary Inspectorate
Federal Inspectorate for Foreign Exchange
Agency for Deposit Insurance, Readjustment, Liquidation and Bankruptcy
Federal Commission for Money Laundering Prevention
Federal Commission for Securities and Financial Market.

Article 15. Following organizations shall perform their duties until their final status is defined:

Federal Bureau for Plant and Animal Genetic Resources
Federal Hydrometeorological Institute
Federal Bureau for Standardization
Yugoslav Accredited?? Body (JUAT)
Federal Bureau for Intellectual Property
Federal Bureau for Measurements and Precious Metals
Federal Bureau for Statistics
Federal Flight Control Department
Federal Inspectorate for Air Traffic
River Transport Belgrade
River Transport Bar
Yugoslav Ship Register Belgrade
Yugoslav Ship Register Tivat
Museum of the History of Yugoslavia
Archive of Yugoslavia.

Article 16. The day the Constitutional Charter comes into effect, the work shall cease with:

Federal State Prosecutor;
Federal Ministry of Internal Affairs;
Federal Ministry of Finances
Federal Ministry of Justice
Federal Ministry for Transport and Telecommunications
Federal Budget Inspectorate
Federal Administrative Inspectorate
Federal Trade Inspectorate
Federal Inspectorate for Transport
Military Legal Office
Federal Public Legal Office
Antimonopoly Commission
Federal Secretariat for Information
Federal Secretariat for Legislation
Federal Secretariat for Development and Science
Federal Secretariat for Labour, Health and Social Issues
Federal Secretariat for Sports and Youth
Federal Secretariat for Religion
Federal Secretariat for Informatics
Federal Bureau for International Cooperation in agro-industry UHIDO Centre Yugoslavia
Federal Bureau for Protection and Health Promotion
Federal Bureau for Social Insurance
Federal Bureau for Labour Market and Migration
Federal Office for the FRY Property
Federal Office for the Commodity Reserves
Agency for the Promotion and Agro-Export Incentives
Agency for Media and Public Relations Research
Service for mutual affairs of the Federal Government and Federal Administrative Bodies
Air-Traffic Service and
The Protocol Service.

Other federal bodies shall cease with their work/operations, as well as organizations, services, permanent and temporary specialized and advisory working bodies and commissions not mentioned in Article 14, 15 and Article 16

Paragraph 1 of this Law. The Council of Ministers may decide that certain services and group of tasks under jurisdiction of the state union of Serbia and Montenegro (previously) performed by bodies, organizations or services mentioned in Article 15 and Article 16 Paragraph 1 of this Law be taken over by institutions of the state union of Serbia and Montenegro. The member states' Agreement, may determine a necessity for performance of duties of particular bodies, organizations or services, including the ones mentioned in Article 15 and Article 16 Paragraph 1 of this Law. With the Agreement of the member states it may be decided/determined that these bodies, organizations or services perform duties as mutual/common bodies, organizations or services of member states. Companies, financial organizations or institutions where the FRY i.e. its bodies, organizations or services have statutory rights shall continue their work except in the event when the Council of Minister proposes their liquidation. If companies, financial institutions or institutions from the Paragraph 5 of this Article continue with their work, statutory rights shall be arranged by/with the member states' Agreement.

Article 17. Certain tasks under Federal Ministries, other Federal Bodies and organizations and services of the Federal Government that cease with the work and that are, in accordance with the provisions of the Constitutional Charter, under jurisdiction of the state union of Serbia and Montenegro are taken over by institutions of Serbia and Montenegro until the enactment of appropriate laws and other acts. The duties shall continue:

1. Federal Ministry for Foreign Affairs shall overtake the duties/tasks:

Of all Federal Ministries, other federal bodies and organizations in the part relating to conducting negotiations and concluding international agreements where
the state union of Serbia and Montenegro, being an international law entity is a contractual side except affairs in connection with international agreements from jurisdiction of foreign economic relations;
all federal ministries, other federal bodies and organizations in the part relating to the rights and obligations resulting from membership in international global and regional organizations, whose membership is preconditioned with state union of Serbia and Montenegro being an international entity.

2.Federal Ministry for Foreign Economic Relations
shall take over duties from all Federal Ministries, other federal bodies and organizations in the part relating to foreign economic relations from the jurisdiction of the state union of Serbia and Montenegro.

3. Federal Ministry of Economy and Internal Trade shall take over the duties of:
Federal Trade Inspectorate, the part related to performing administrative supervision in order to prevent and abolish obstacles to the free movement of goods, services, persons and capital within state union of Serbia and Montenegro;
Antimonopoly Commission, the part related to preventing the creation and cessation of the existence of the monopolistic behaviour or such position within the common market of the state union of Serbia and Montenegro;

4. Federal Ministry of National and Ethnic Communities shall overtake duties of:
Federal Ministry of Justice, the part related to the implementation and supervision of the freedom and rights of a person and citizen and extradition, guaranteed by the Constitution, International Agreements and the Laws.
Federal Ministry of Internal Affairs, the part related to foreigners i.e. migration politics, policy of moving in and granting the asylum, travel documents i.e. visa regime and state border, i.e. integrated border management.

5. General Secretariat of the Federal Government, taking over the duties of:
The Federal Ministry of Finances, in the part related to the financial service tasks, in connection to the preparation of the documents for the out-of-use???? of the institutions of the state union of Serbia and Montenegro through the member state Treasury;
Federal Ministry for Justice, the part related to: the property of the state union of Serbia and Montenegro necessary for functioning of its institutions, and with regard to the corresponding affairs of the Office for FRY Property as well as the affairs on protecting that property in proceedings conducted before courts and other state bodies from the part of the Federal Public Legal Office, functions and organisation of the institutions of the state union of Serbia and Montenegro and (legal) position of the employees within;
Federal Administrative Inspectorate, in the part relating to performing of internal control i.e. administrative supervision of legality of administrative proceedings and harmonized performance of the Ministries of the Council of Ministers and other institutions deciding on implementation of the administrative proceedings and proceeding in line with regulations on office operations;
Federal Secretariat for Legislation, the part related to: providing a methodological unity in law preparation proposed by the Council of Ministers and regulations it passes in accordance with the legal authorisation; building and advancement of the legal system of the state union of Serbia and Montenegro and in charge of publishing regulations in the Official Gazette;
Federal Secretariat for Information, the part related to: informing public on the Council of Ministers'work and its Ministries and analysing
local and foreign media reports on the work of the Council of Ministers and its ministries and their introduction of the analysis of the situation
Federal Office for Informatics, the part related to the building and advancement of the informatics system of the state union of Serbia and Montenegro; providing informatics support to the work of the Council of Ministers, its Ministries and Service and their connection with other institutions of the state union of Serbia and Montenegro and state bodies of the member states;
Service for Mutual Affairs of the Federal Government and Federal Administrative Bodie
Air-traffic Service and
The Protocol Service. The General Secretariat of the Federal Government shall supervise performance of duties/tasks from Paragraph 5 of this Article. The Federal Ministry for Defence shall overtake Military Legal Office matters.

Article 18. Institutions of the state union of Serbia and Montenegro, i.e. state bodies of the member state whose competences shall overtake those duties of a body and organization of the Federal Republic of Yugoslavia or a Federal Ministry, other federal body or organization or Federal Government Service, when taking over duties shall concurrently take over employees, who at the day of the Constitutional Charter effectuation were assigned to the working positions where the duties being taken over are performed, i.e. who were directly employed working on these tasks. The employees not taken over into institutions of the state union or state bodies of the member states shall exercise their employment rights not longer than one year from the date of cessation of the need for their employment. Federal Deputies in the Federal Assembly and persons who, in accordance to the regulations of the Federal Law at the moment of the Constitutional Charter comes into effect, hold the status of an elected state official and whose mandate (i.e. their function) is to be ceased, shall with constitution of institutions of the state union of Serbia and Montenegro or with election of new officials, be entitled to the allowance/pay until fulfilment of the conditions for their retirement or solving of their legal-working status, no longer than one year form their mandate (i.e. function) cessation.

III HARMONIZATION OF THE REGULATIONS WITH THE CONSTITUTIONAL CHARTER

Article 19. Federal laws and other federal regulations from the area that is, according to the Constitutional Charter, in the jurisdiction of the institutions of Serbia and Montenegro, shall be implemented as Legal Acts of Serbia and Montenegro, as well as International Agreements ratified by FRY, except the parts in obvious opposition with the provisions of the Constitutional Charter. The member states shall harmonize their constitutions with the Constitutional Charter and ratified International Agreements of the state union of Serbia and Montenegro no later than 30 June 2003. Institutions of Serbia and Montenegro are obliged to harmonize regulations from the Paragraph 1. of this Article with the Constitutional Charter no later than one year term from the day the Constitutional Charter has come into effect. The member states are obliged to harmonize their laws and other regulations with the Constitutional Charter, ratified International Agreements of the State Union of Serbia and Montenegro and the laws of the state union of Serbia and Montenegro no later than 31.12.2003. The Acts from Paragraph 1. of this Article, not under jurisdiction of Serbia and Montenegro that is established by the Constitutional Charter, shall be applied after the Constitutional Charter has come into effect as General Acts of the member states until the date they are put out of force by the relevant bodies, except the parts in opposition with the Constitutional Charter provisions and with exception of parts already regulated with the regulations of the member states. After its constituency the Assembly of Serbia and Montenegro shall form a separate commission for the purpose of overseeing the harmonization of regulations of Serbia and Montenegro with the Constitutional Charter. The Commission from the Paragraph 6. of this Article shall propose the programme of harmonization, taking into account the deadlines stipulated by this Law and the urgency of regulating special relations.

IV PROPERTY Article 20.

Proposal 1: With the Constitutional Charter coming into effect the FRY property, with the purpose of realization of established competences of institutions of the state union stipulated by the Constitutional Charter, shall become the property of the state union that is, in accordance with the special law, being used and administered by institutions of the state union. The Law on Property of state union shall be passed no later than six (6) months from the day the Constitutional Charter has come into effect. The FRY Property (the property rights and other real rights over movable and immovable properties, obligation rights and other property rights) used for performing functions of the federal bodies and organizations that, according to the Constitutional Charter, are not in the jurisdiction of the institutions of the state union shall on the day the Constitutional Charter comes into effect become the property of the member republics according to the territorial principle and in accordance with the Constitutional Charter. The FRY Financial Assets created until 3 November 1999, i.e. until the day of withdrawal of the Republic of Montenegro from the FRY monetary system, shall be allocated in proportion to the member republics' participation in the FRY Gross National Product, except if the participation in creation of these Assets cannot be determined according to the territorial principle. The FRY Financial Assets, created from 3 November 1999, i.e. from the day of withdrawal the Republic of Montenegro from the FRY monetary system, with the approval of funds from international financial organizations and other foreign creditors or by distribution of the ex-SFRY property, shall be allocated in proportion to the members republics' participation in the FRY Gross National Product, unless agreed otherwise with the international agreements. Other Financial Assets created from 3 November 1999 shall belong to the state of Serbia. The division of the physical property from the Paragraph 3. of this Article shall be performed by the special commission, no later than 30 days from the day the Constitutional Charter has come into effect.

Proposal 2: With the Constitutional Charter coming into effect the FRY property, with the purpose of realization of established competences of institutions of the state union stipulated by the Constitutional Charter, shall become the property of the state union that should, in accordance with the special law, be used and administered by institutions of the state union. The Law on Property of state union shall be passed no later than six (6) months from the day the Constitutional Charter has come into effect. The FRY Property constituted/consisted of the real rights over immovable properties as well as movable properties that are in function to/over these immobilities and were used for performing functions of the federal bodies and organizations that, according to the Constitutional Charter are not in jurisdiction of the federal state institutions shall become the property of the member states, according to the territorial principle. The member states shall, by mutual consent, determine the principle for distribution of the remaining property used by federal bodies and organizations from the previous Paragraph. The member states shall, within one month from the date of the Constitutional Charter coming into effect, create a Commission in charge of distribution of the entire property of the Federal Republic of Yugoslavia. The Commission shall, in a 90-day-term, establish the volume and structure of the entire property of the Federal Republic of Yugoslavia that is anticipated for distribution. The subject of distribution shall be the property of the FRY that is as such determined by the Agreement on Succession, as well as the one originated after the breakdown of the Socialist Federative Republic of Yugoslavia. In the event that following the distribution of the existing property the existence of another property is established/determined, it will be distributed according to the distribution principle applied by the Commission established by the member states, from the

Paragraph 5 of this Article.

Proposal 3:

Article 20 shall be erased. V MATERIAL AND OTHER LIABILITIES OF THE FRY

Article 21. Material and other liabilities taken over by the FRY until the day the Constitutional Charter has come into effect shall be regarded as liabilities of the state union, unless agreed otherwise by the Special Commission for the Border Demarcation and Property Division. The FRY Financial Liabilities created until 3 November 1999 i.e. the day of withdrawal of the Republic of Montenegro from the FRY monetary system shall be allocated according to the member republics' participation in the FRY Gross National Product, unless the liability is allocated according to territorial principle. The FRY Financial Liabilities created from 3 November 1999 i.e. the day of withdrawal of the Republic of Montenegro from the FRY monetary system, and based on loans granted by international financial organizations and other foreign creditors or by distribution of the ex-SFRY property shall be allocated according to the members republics' participation in the FRY Gross National Product, unless agreed otherwise by international agreements. Other Financial Liabilities created from 3 November 1999 shall become the liability of the state of Serbia.

Alternative:

Article 21 shall be erased.